Always consider hidden risks
Russell 2000: At Technical Crossroads?
​February 29 2016 ( From TradingView )
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​The Situation

The Russel 2000 Index (R2K) is At Technical Crossroads to say the least.

​​Here is some Technical Observations:​​​
​1) R2K is at 9.9% from its bottom reached on February 11 2016 and
SP500 is at only 7.6%​​​​.

​​2) R2K from highest peak price ( reached on June 23 2015 ) to the lowest
​price yet ( reached on ​February 11 2016 ) was 27.2% and only 15.2% for
​the Mighty SP500. ​​​​

​​​So the R2K outperformed lately the Mighty SP500 Index. Interesting to note that this ratio reached the bottom of this cycle on February 9 2016 and almost kissed the support from a weekly downward channel that started back since March 2014. R2k are outperforming since then...​ ​( See chart below - Channel ).

But the real interesting part is that we are now back testing the Break Down Major Trendline that started back on March 2009. This is a crucial technical test for Bulls indeed that will make the difference between a dead cat bounce or a more sustained rally for the R2K. ( See second chart below - Red Trendline - Ellipse ).


Russell 2000: At Technical Crossroads?   $SPY, $IWM  #Trading #russell2000 #SP500
Weekly RATIO
Russell 2000 Over SP500 ( Blue Line )
21 WMA ( Top Panel - Yellow Line )
SP500 Index ( Candles )​​

Russell 2000 Index
Daily Candles​ - Right Scale
​20 DMA ( Yellow Line )
​50 DMA ( Red Line )
200 DMA ( Green Line )